Thinking the unthinkable out loud, from the top, in the midst of a world financial crisis. If the world stops trusting Treasuries, America will have to pay for what we consume from abroad out of foreign currency earnings.
Belinda Cao and Judy Chen of Bloomberg write: China, the U.S. government's largest creditor, is "worried" about its holdings of Treasuries and wants assurances that the investment is safe, Premier Wen Jiabao said.
"We have lent a huge amount of money to the United States," Wen said at a press briefing in Beijing today after the annual meeting of the legislature. "I request the U.S. to maintain its good credit, to honor its promises and to guarantee the safety of China's assets."
Hat tip: Dennis Sevakis